Importing raw sugar not only brings benefits to workers, businesses, the state, consumer’s health; but also he...
According to the Vietnam Sugar and Sugarcane Association (VSSA), when the ASEAN Free Trade in Goods Agreement (ATIGA) takes effect, it is expected to directly affect 41 sugar factories, 330 thousand farmer households, 1.5 million workers and 350 thousand industrial employees.
Therefore, VSSA submitted to the Prime Minister the mechanism of the import tariff quotas for sugar in 2017 at the end of 2016. Ac
cordingly, VSSA proposed to the Prime Minister to assign the Ministry of Industry and Trade to issue the official mechanism and implement of auction in sugar import tariff quotas. Up to present, there are 41 Vietnamese sugar factories with a total designed capacity of 155,000 tons of sugarcane per day, of which about 50% of the design capacity of the sugar factories are refined sugar production (there are 11 factories produces sugar from sugarcane and 01 factory refines sugar from raw sugar).
It can be seen that sustainable development must come from ensuring economic growth as well as solving effectively social issues.
In the recent years, some factories having refined sugar production technology still import raw sugar from overseas to produce besides using domestic raw materials to meet the domestic demand.
The import of raw sugar under tariff quotas will contribute to save foreign currency and increase revenues for the state budget.
At the same time, the state will also be able to collect value-added taxes, and corporate income tax from sugar factories.
In the fact, many countries tend to import raw sugar to refine domestically to create the added value instead of importing while sugar directly. For example, Brazil's raw sugar export volume was 19.5 million tons (accounting for 82% of total sugar export volume), Thailand was 4.8 million tons (64%) and India was 0.15 million tons (7%) in the 2015 - 2016 crop.
In reality of the domestic and world markets, importing raw sugar not only brings benefits to workers, businesses, the state, consumer’s health; but also help to develop supporting industries such as packaging, coal, raw materials, etc. to contribute to Vietnam economy and rise support service fees.
Via Vietnam Economic News